Decode Politics: Why Kerala Vigilance’s push for CBI probe against Satheesan has fuelled LDF vs UDF battle

The Kerala Vigilance and Anti-Corruption Bureau (VACB)’s recommendation for a Central Bureau of Investigation (CBI) probe into the allegation that V D Satheesan, senior Congress leader and Leader of the Opposition (LoP) in the Assembly, had collected money from abroad in violation of the Foreign Contribution (Regulation) Act (FCRA) has sparked a political row in the state.

At the centre of the row is the Punarjani project, through which Satheesan sought to rehabilitate victims of the 2018 floods in his constituency Paravur. The Opposition Congress has termed the VACB’s recommendation “politically motivated” as it has come just ahead of the Assembly elections slated for April. It has also come after the ruling CPI(M)-led Left Democratic Front (LDF) suffered a setback in the recent local body elections at the hands of the Congress-led United Democratic Front (UDF).

What is the Punarjani project?

Following the 2018 Kerala floods, which left nearly 500 dead and displaced lakhs, Satheesan had conceived a project called Punarjani aimed at rehabilitating victims in his constituency. The Manappat Foundation, the corporate social responsibility wing of the Dubai-based Manappat Group, was identified as a facilitator in this regard.

During Satheesan’s visits to various countries to mobilise funds, a video from Birmingham, United Kingdom, emerged that purportedly showed Satheesan soliciting donations for this project to be implemented by Manappat Foundation.

The idea behind the project was to rebuild houses and other infrastructure, and revive means of livelihood for victims devastated by floods with the help of various charitable organisations.

What was the complaint against Satheesan?

While the issue was first raised in the Assembly in 2018, by 2020, Jaison Panikulangara, a member of Nitta Gelatin Action Council at Chalakudy, had moved the Kerala High Court seeking a probe into Satheesan’s alleged bid to mobilise funds abroad for Punarjani in violation of the FCRA.

The Nitta Gelatin Action Council had been formed in 2008 to protest waste water dumping in the Chalakudy river.

Prior to that, Panikulangara had approached the CBI and Enforcement Directorate (ED) with the same plea, but the agencies did not act on it. The High Court rejected the petition in 2020, pointing out that the complainant could not produce any documentary evidence to substantiate the alleged crime, other than a video clip. The court had then noted that the complainant had already petitioned the VACB and was awaiting action.

What are VACB’s recommendations?

It was only in 2023 that the LDF government ordered the VACB probe against Satheesan based on Panikulangara’s complaint. The probe order came at a time when the UDF had targeted Chief Minister and CPI(M) veteran Pinarayi Vijayan for soliciting sponsorships from expatriates in the United States for a regional meeting of the Loka Kerala Sabha, a conference of non-resident Keralites. In May 2024, the ED initiated its probe into Satheesan based on Panikulangara’s complaint.

In its early 2025 report, which was submitted to the government then but made public only recently, the VACB had recommended a CBI probe into the allegation that Satheesan had violated the FCRA, which prevents acceptance of foreign contributions or currency for specified political organisations and stipulates prior permission from the Centre. The VACB also recommended notifying the Assembly Speaker for violation of Rule 41 of the Rules of Procedure and Conduct of Business in the Assembly.

The recommendation for the CBI probe also mentioned a functionary of the Manappat Foundation, which was said to have received the donations for the Punarjani project. However, the VACB found no evidence connecting that money to Satheesan and his accounts. The VACB also found that Satheesan was not guilty of violating the Prevention of Corruption Act, but said that he failed to get the Centre’s approval for fund mobilisation.

However, the VACB, in its latest report that was also made public recently, said there is no evidence that Satheesan personally accepted foreign contributions or that the Manappat Foundation falls under any categories specified under the FCRA.

Referring to its earlier report calling for notifying the matter to the Assembly Speaker, the latest VACB report said the MLAs may attend events hosted by NGOs or private associations related to Kerala during their foreign visits. Recommending action to the Speaker for such visits might establish a precedent for similar measures against other leaders.

Satheesan said the Punarjani project was only a facilitator for linking beneficiaries with donors for various schemes. He said he had not collected any funds, and instead urged people to contribute to the Manappat Foundation, adding that all the pertinent documents have been maintained.

As part of the project, 110 sewing machines were distributed, 1,600 households were given financial assistance ranging from Rs 5,000 to Rs 50,000, 48 tonnes of feed were given to dairy farmers, and 22 school labs were renovated.

Manappat Foundation CEO Ameer Ahamed said the group had collected Rs 20 lakh through their FCRA account, which was still active.

Senior CPI(M) leader and state Law Minister P Rajeev said the government will take legal action over the allegations. He also reminded the Congress that its own government in 2006, months before the Assembly elections that year, had ordered a CBI probe into the alleged SNC Lavalin hydroelectric station corruption scandal, in which Pinarayi Vijayan was an accused. The then Congress government had overruled the VACB findings, which had cleared Vijayan, to order a CBI probe. Vijayan was later also cleared by the High Court.